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What Changes for Anacortes Taxpayers: 2025 vs. 2027

Did you know that your property tax bill could go up by almost $1000 in 2027 when all major levies are in place for city of Anacortes residents? Multiple levies and increased property values will have significant impact on property taxes through 2027.

 

Key Assumptions (Conservative)

  • Home assessed at $750,000 in 2024 for 2025 tax collection
  • 4% annual assessed value (AV) growth
  • Both school levies approved Feb 2026 begin collection in 2027
  • Additional hospital levy implemented in 2026
  • Fidalgo Pool passes its M&O levy for implementation in 2027 for $0.12 per $1000 AV
  • City, County, State and other levies will have 1% increase annually
  • Dollar estimates rounded for clarity
  • Potential bond for City and Port’s joint Event Center project not considered

 

Annual Property Tax Impact by Category

Levy Category 2025 Est. 2027 Est. Change
School levies & bond service ~ $1250 ~ $1660 + ~$410
Hospital levy & bond service ~ $460 ~ $800 + ~$340
City, county, state & others ~ $3,920 ~$4,120 + ~$200
Total Annual Property Tax ~ $5,660 ~ $6,600 + ~$940

 

 

What’s Driving the Increase

  • School taxes alone rise ~33% from 2025 levels once new levies begin in 2027
  • Island Health levy is to implement additional levy ($0.41 per $1000 AV) in 2026  — it will bring the total levy and bond rate to about $1.01 per $1000 AV in 2026 and 2027
  • Assessed value growth compounds everything

 

Bottom Line

By 2027, a typical Anacortes homeowner could pay almost $1000 more per year than in 2025 — not because of a single levy, but because multiple levies stack on top of rising property values. Each measure may appear manageable on its own. Together, they create a permanent step-up in household taxes that continues beyond 2027.

 

Anthony Lee

Anacortes, WA

 

Where Do Your Property Taxes Go? And What’s Coming for Anacortes Schools?

Did you know Anacortes School District is asking voters to approve significantly larger levies in February 2026? When Anacortes residents open their property tax bills, it can be challenging to determine who actually receives those dollars. The City of Anacortes 2026 Final Budget document offers a clear snapshot on page 33 that helps answer this question. It also underscores why school district levies and bonds warrant close scrutiny in the coming years.

 

The Big Picture: Property Taxes in Anacortes

According to the city’s full-year 2025 property tax breakdown, nearly one-quarter of every property tax dollar paid by Anacortes residents goes to the Anacortes School District. Here’s how the total property tax pie is divided:

 

Full Year 2025 Anacortes Property Tax Breakdown

                                                                 

The school district receives a larger share of local property taxes than the city itself, second only to the State. As new school levies appear on upcoming ballots, understanding how they fit into the overall tax picture is essential.

 

Anacortes School District Budget and Funding Sources            

According to https://www.OSPI.k12.wa.us, ASD is funded by Washington state, Local taxes, Federal government and other sources. The proportions from the four major sources have been stable for the past three years as shown in Table 1 and the charts below. The state funding actually increased by 3% annually for the past three school years despite declining enrollment of 1%.

 

Table 1. ASD Revenue by Funding Sources

                 

 

What Makes School Taxes Different?

Unlike the State levy or the City’s regular levy (which is capped at a 1% annual increase), school taxes are driven by voter-approved levies and bonds.

  • Educational Programs & Operations (EP&O) Levies fund day-to-day school operations such as staffing, programs, and services not fully covered by state funding.
  • Technology and Capital Improvement Levies fund instructional technology upgrades and facility maintenance.
  • Capital Bonds fund long-term construction, major renovations, and facility upgrades, with repayment stretching over decades.

These measures are layered on top of the existing school tax base and significantly change a household’s tax bill.

 

Looking Ahead: Proposed ASD School Levies and Bond Service

The Anacortes School District (ASD) levies (see Table 2) shows that school levy collections are set to increase in the coming years if Proposition 1 and 2 pass in February 2026, even as enrollment trends remain flat or declining. When levies are reset, they often establish a higher dollar amount, permanently elevating the baseline for future collections. The bond service figures in Table 1 are an estimated average from 2026 to 2035 based on the school bond terms.

The proposed levy increase will not be implemented until 2027 if Proposition 1 & 2 are approved by the voters. To visualize the projected growth in total school taxes (including levies and bond service), the stacked column chart shows the totals for 2025 and the projected years 2027–2030. This represents an average increase of about 36% from the 2025 total to the 2027-2030 average.

Table 2. ASD Proposed Levies and Estimated Bond Services 2027-2030

 

What Residents Should Ask Before Voting

Given the substantial share of property taxes allocated to the school district, residents should feel comfortable asking clear, practical questions before approving new measures:

  • How does projected spending align with enrollment trends?
  • What maintenance was deferred in the past, and why?
  • What portion of costs should be funded with bonds versus operating levies?
  • How much will the school tax cost your household over time?

 

Transparency matters — especially when schools already account for one dollar out of every four paid in property taxes. An informed vote starts with seeing the full pie, not just one slice of it.

Sal Walker

Anacortes, WA

Fidalgo Pool’s Comeback Wave: Can a Bold Park District Plan Win After the Near Miss in 2024?

Did you know that the Fidalgo Pool and Fitness Center will be on the ballot again this November based on forming a Metropolitan Park District (MPD) to replace the Fidalgo Park and Recreation District (PRD)? The pool, a community hub since 1975, serves over 6,500 visitors monthly and supports youth and adult swim teams. Proponents, including Executive Director Dahlen (appointed April 2025), argue the MPD ensures stable funding for the aging facility. Critics warn of a 30% tax increase, forced annexation of Guemes Island, and loss of voter control. This blog examines both sides to help residents decide, using Washington State regulations (RCW 36.69 for PRD, RCW 35.61 for MPD) and community input. A comparison table below details key differences.

 

Why Support the MPD?

The MPD proposal, backed by the Fidalgo Pool and Fitness Center and Friends of the Pool, aims to secure long-term funding for the 50-year-old facility, which faces compliance issues and potential $30 million replacement costs. The current PRD relies on a six-year Operations and Maintenance (O&M) levy ($0.092 per $1,000 assessed value), requiring 60% voter approval for renewal. A failure, as occurred 31 years ago, could disrupt operations. The MPD’s permanent levy ($0.12 per $1,000) eliminates this risk, ensuring predictable funds and improving loan access for repairs. Proponents argue it replaces the current levy, not adding a new tax, and aligns boundaries with the Anacortes School District, spreading costs across Fidalgo and Guemes Islands. Public oversight remains via elected commissioners and voter approval for levy increases beyond 1% annually or bonds for new facilities.

 

Why Oppose the MPD?

Critics argue the MPD imposes unnecessary burdens. Residents claim the proposed levy ($0.12 per $1,000) raises taxes by ~30% from $0.092 per $1000, hitting fixed-income households hard. Guemes Island’s inclusion is contentious, with over 60% of Guemes voters rejecting the MPD in 2024, citing limited access due to ferry costs and “political overreach.” The permanent levy removes the six-year voter renewal, giving five commissioners authority over budgets, which critics call a loss of voting rights. With levies consistently approved for 30 years and the option to seek funds before 2027, opponents question the need for change, viewing it as a power grab. The 2024 vote’s narrow defeat (4,410 against, 4,407 for) reflects deep community division.

 

What Should Residents Do?

Vote Yes if you prioritize permanent levy for stable funding for the pool’s future, value improved loan access for repairs, and support regional cost-sharing. The MPD addresses the facility’s aging infrastructure and avoids the risk of levy failures.

Vote No if you oppose the 30% tax increase, resent Guemes Island’s inclusion against strong opposition, or value direct voter control via levy renewals. The PRD’s 30-year success and flexibility suggest it may suffice.

Residents from both Anacortes and Guemes Island can engage at commissioner meetings (third Thursday, 5:30 pm, commissioners@fidalgopool.com) or visit fidalgopool.com for updates. The November 2025 vote will shape the pool’s future—decide what balance of the pool’s financial stability and voter control works for you!

 

Sal Walker

Anacortes, WA

The Escalating Cost of Living in Anacortes: 2015 – 2025

Did you know that Anacortes with a population of approximately 16,189 as of 2015 and 18,270 as of 2025, has seen sharp increases in property taxes, utility fees and cost of building homes from 2015 to 2025? We have discussed property taxes in previous blogs. This blog will focus on utilities fees and cost of building homes.

 

I Trends in Fees 

I-1 Electricity Rates

Electricity rates in Anacortes have consistently exceeded state averages. According to Electricity Local, the average residential electricity rate in Anacortes is 10.36¢/kWh, 21.45% higher than Washington’s average of 8.53¢/kWh. For the past 25 years, Washington’s electricity prices have risen at an annual rate of 4.27%, outpacing the average inflation rate of 3.35% from 1998 to 2022. Puget Sound Energy proposed rate increases, including a 12.9% hike in 2023, though the Washington Utilities and Transportation Commission approved an 8.7% increase. This reflects a broader trend of rising energy costs driven by state policies and infrastructure needs.

 

I-2 Water, Sewer and Storm Water Rates

Water and sewer rates in Anacortes are managed by the city and not regulated by the UTC. A 2015 Anacortes Retail Water Rate Study emphasized the need for rate adjustments to fund infrastructure maintenance. In 2019, the City Council approved a $3,823 increase in the general facilities charge (GFC) for water and sewer connections for new construction to fund a new water treatment plant and wastewater treatment plant expansion. Contractors and residents have felt the higher GFC impact on their costs to build new homes. Some even came to the City Council meetings to complain about the high cost to hook up to city utilities.

In the past ten years, water rates and storm water fee for single family residents have increased almost 20% annually. Concerned citizens have spoken at the Monday night city council meetings and requested the City Council to help with high water bills. The sewer rates have an average of 5-7% increase annually which is also higher than the average inflation rate.

 

I-3 Solid Waste and Other Utilities

Solid waste services, including garbage, recycling, and organics, cost approximately $30 per month in Anacortes in 2025, aligning with state averages due to participation in recycling and composting programs. The city imposes a 12% solid waste utility tax, with an additional 3.6% state public utility tax forwarded to Washington. Natural gas prices have also risen, with residential rates increasing 16% from 19.02 $/Mcf in September 2023 to 21.98 $/Mcf in September 2024.

 

I-4 Development Impact Fees

In 2021, Anacortes raised residential development impact fees for parks, increasing them from $616 to $1,362 for single-family homes and setting them at $981 per multifamily unit. The city also significantly increased transportation impact fees. These adjustments were based on the city’s Comprehensive Plan, which projects a population growth of 5,000 and a need for 3,000 additional housing units. Additionally, a new commercial development impact fee was introduced to support $4 million in park-related capital projects. These increased fees have contributed to higher building costs, home prices, and overall living expenses, exacerbating the demand for affordable housing. This, in turn, necessitates additional taxes and fees to fund affordable housing initiatives, creating a concerning cycle of rising costs and financial burdens.

 

II Impact on Residents

Rising utility fees exacerbate Anacortes’ high cost of living, 19% above the Washington average and 40% above the national average. Low-income and fixed income households face particular challenges. Recognizing the financial strain on residents, Anacortes offers a Utility Discount Program providing a 30% reduction on utility bills for eligible low-income households. Eligibility is based on income guidelines and property tax exemptions. A $2 discount for Auto Pay and Paperless Billing is also available but require enrollment.

 

III Conclusion

Building and cost of living in Anacortes have risen sharply from 2015 to 2025 due to infrastructure upgrades and expansion, operational cost increases, state energy policies, population growth and inflation. Energy cost has grown steadily while city utility fees saw significant increases. To address affordability, Anacortes should examine its capital facilities plan against its actual population growth. For the past ten years, the city has an average of 1.3% annual population growth, much lower than its Comprehensive Plan’s growth factor which is the basis for capital projects, policy development and city planning. Building infrastructure capacity ahead of population growth curve significantly burdens its current residents. Additionally, the city should invest in energy-efficient infrastructure to balance service reliability with resident needs. While these increases are essential for maintaining and enhancing service quality, they underscore the importance of transparent budgeting and financial assistance programs to support residents.

 

Sal Walker

Anacortes, WA

 

Why the Dramatic Increase in Anacortes Property Taxes

Did you know why Anacortes property taxes have dramatically increased over the last few years?  There are two main reasons for the increase:

  1. Assessed Value Increase:   Market value of Anacortes real estate and consequently assessed value of Anacortes real estate increased dramatically in 2023.  These increases resulted in an overall Anacortes property valuation increase of 17% in 2023 for the 2024 tax year.
  2. Levy Increase:   Voters passes a significant Anacortes city levy in 2023 resulting in a levy increase from 0.98 for 2023 to 1.34 for 2024.  This levy increase was for the purpose of adding  5 police officers and 8 firefighters to improve the safety and security of our Anacortes Community.

The combined impact of the above actions resulted in an increase of property tax revenue for the City of Anacortes from $5,684,034 in 2023 to $8,405,509 or a 49% increase.

Below is a table showing the year over year Anacortes assessed property values and the actual total yearly Anacortes City tax revenue generated.  Note the result for 2024 showing the 49% increase as compared to 2023.

The above table shows that due to compounding the overall assessed value of Anacortes property increased 148% from 2015 to 2025.  This  is an average of 15% increase per ear over the 10 year period.

In 2024 the increases in market and assessed values slowed dramatically, due to higher interest rates and lower demand.  Additionally other revenue sources for the City of Anacortes such as new construction fees and excise tax from sold properties showed declining trends.

Despite the county increasing the assessed property value and average of 15% per year, the Anacortes City Council  continues to increase the tax levy an additional 1% per year, which is the maximum allowed without voter approval.

This situation signifies a need for a “Call to Action” for Anacortes property owners. Pay close attention to City Council member decisions  on spending and planning for the next 2026 budget cycle.  You can do this by:

  1. Writing to the City Council (citycouncil@cityofanacortes.org);
  2. Attending every Monday (first four weeks each month) City Council meeting at 6PM at City Hall;
  3. Voting for City Council candidates who represent your interests.

Anthony Lee 

Anacortes, WA

How to Appeal Your Property Assessed Value

Did You Know that if you disagree with the County Assessors valuation of your property, you can appeal for a review?  To successfully appeal the assessed value of your property, you must show by clear and precise evidence that the value established by the Assessor is incorrect.  Some key examples as to why you might want to file such an appeal are: 

  •  Loss of view            
  •  Incorrect reporting of square footage of lot or home;    
  •  Incorrect valuation of your home relative to recent recorded  home sales in your direct neighborhood for homes of similar size and features;    
  •  Change in the condition of the property;           
  •  Change in the condition of the neighborhood.   

 

To appeal your real property valuation, you can: 

  1. Call the  County assessor’s office (360) 416-1780  and talk to a staff member regarding the reason why you disagree with the property valuation. 
  2. File Petition:  If your issue cannot be resolved through a telephone call, you can elect to file a relatively easy form called an “Appeal Assessed Valuation of Property”.  (You can access this form by going to the County Assessor’s website.  Click on “Find it Here” and then “Forms”.  In the drop-down menu click on “Appeal Assessed Value of Property”.)  You will be asked to submit the form to the County Board of Equalization that will review and make the decision regarding your appeal.

 

 Your appeal needs to be submitted to the Board of Equalization within 30 days of your being notified of a valuation change or by July 1 of the assessment year, whichever is later.   Your submitted form should include the pertinent information that describes the differences between the assessor’s value and what you believe to be the value of your property.  For example you may want to include pictures, comparisons of recent sales of similar properties in your neighborhood and/or architecture designs with documented square footage.

Caution:  Be Patient:  The Appeal process may take 30-60 days, so be patient. You will receive notice of the status of your appeal and/or you may hear directly from an assessor assigned to review your appeal.

Don’t submit a frivolous appeal:  Keep in mind that your appeal is going to receive serious consideration as well as a thorough analysis of your property and the information you have provided.  Submitting a frivolous appeal and/or without proper documentation is not recommended. If you would like further information from a citizen that has successfully experienced the appeal process, you can email to info@did-you-know-anacortes.com.

Anthony  Lee

Anacortes, WA

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